Mortgage debt is becoming an increasing concern for many people after the recent interest rate hikes from the Bank of England. When increased mortgage repayments are added to credit card bills and other expenses it's hardly surprising that more people than ever are expected to struggle with debt in 2007 and even through into 2008.

When it comes to severe debt or a debt that has reached crisis point one solution is an Individual Voluntary Arrangement (IVA). This procedure has received a lot of negative media attention in recent times, but in 2007 it is likely to overtake personal bankruptcy as the number one tool for servicing insolvency. For very severe debt the IVA has some benefits when compared to the other options available. For example, with an IVA you can often keep hold of your property or business where as with bankruptcy you are likely to lose these assets.

However, an IVA can still leave a black cloud hanging over your finances and restrict you from having the luxury of making many decisions. It's also worth remembering that an IVA is a serious financial procedure and is only worth considering if you have an extreme amount of debt.

There are other options which you should research to see if they could be available to you. A debt management plan is a system whereby you pay a set monthly amount to a company in return for them dealing with all of your creditors and payments.

Another possible solution is a debt consolidation loan where you exchange your multiple debts for one lump sum at a much more competitive rate of interest. However, you must ensure that you do all of the working out to guarantee you get the best deal.

Debt problems can be incredibly confusing with many alternatives and solutions. They key is to seek out as much information as possible. Take comfort in the fact that there are many several thousands of people in the same situation as you and there is a great deal of advice available. Use the internet to research as much as possible and take time to get independent expert advice, which is often available free at your local Citizens Advice Bureau.